The First-Time Homebuyer’s Guide: Everything You Need to Know

Buying your first home is one of the biggest financial decisions you’ll ever make. It’s exciting, overwhelming, and if you’re not prepared, it can also be frustrating. After 12+ years in the mortgage industry, I’ve helped countless first-time buyers navigate the process—some with ease, and others who hit roadblocks because they didn’t have the right information upfront.

That’s why I created Hartfelt Buying Tips—to help first-time buyers like you avoid costly mistakes and feel confident in your homebuying journey. Whether you’re just starting to explore your options or ready to get pre-approved, this guide will walk you through what to expect, what to avoid, and how to set yourself up for success.

Step 1: Know What You Can Afford

Many first-time buyers start shopping for homes before they fully understand what they can afford. A home’s listing price isn’t the only expense you need to consider—you also have to factor in property taxes, homeowner’s insurance, HOA fees (if applicable), and maintenance costs.

How to Calculate Your Home Budget

A good rule of thumb is the 28/36 rule:

✅ Your mortgage payment should not exceed 28% of your gross monthly income.

✅ Your total debt payments (including your mortgage, car loan, credit cards, etc.) should not exceed 36% of your gross income.

🔹 Example: If your monthly income is $6,000, your mortgage payment should ideally be $1,680 or less, and your total debt payments should stay below $2,160.

🔹 Pro Tip: Use a mortgage calculator to estimate your monthly payments based on different loan types and interest rates.

Step 2: Get Pre-Approved (Not Just Pre-Qualified!)

There’s a big difference between getting pre-qualified and getting pre-approved for a mortgage.

• Pre-Qualification is a simple estimate of what you might be able to borrow, based on basic financial details you provide.

• Pre-Approval is a lender’s commitment to lend you a certain amount, based on a full review of your credit, income, debt, and assets.

Why Pre-Approval Matters:

✔️ It shows sellers you’re a serious buyer.

✔️ It gives you a clear budget to shop within.

✔️ It prevents surprises later in the process.

Hart Tip: In competitive markets, homes go fast. If you’re not pre-approved, you could lose out to another buyer who is. I’ve seen too many buyers fall in love with a home, only to lose it because they weren’t ready to make a solid offer. Don’t let that happen to you.

Step 3: Avoid These Common First-Time Homebuyer Mistakes

1. Not Checking Your Credit Score in Advance

Your credit score plays a huge role in determining what interest rate you’ll get on your loan. A higher credit score means a lower interest rate, which can save you thousands over the life of your loan.

✅ Check your credit score at least 6 months before buying a home.

✅ Pay down debts, avoid new credit inquiries, and correct any errors on your report.

✅ For the best mortgage rates, aim for a score of 680+ (though many loan programs accept lower scores).

2. Emptying Your Savings for the Down Payment

While a larger down payment can lower your monthly mortgage costs, it’s important to keep an emergency fund intact. Buying a home comes with unexpected expenses, from closing costs to repairs and moving expenses.

Ideal plan:

✔️ Save at least 3-6 months of living expenses in an emergency fund.

✔️ Consider loan options that allow low or no down payment, like FHA or VA loans.

Hart Tip: I’ve had clients drain their savings for a down payment, only to struggle with unexpected costs right after moving in. Don’t put yourself in that position.

3. Skipping the Home Inspection

Never, ever skip the home inspection just to speed up the process or make your offer more competitive. A house may look perfect, but hidden issues—like foundation problems, plumbing leaks, or electrical hazards—can turn into costly nightmares.

Key Home Inspection Checklist:

✔️ Structural Integrity

✔️ Roof & Foundation

✔️ Plumbing & Electrical

✔️ HVAC System

✔️ Mold & Water Damage

Hart Tip: I had a client once who was about to buy a home with a hidden $15,000 foundation issue. The inspection saved them from a massive financial headache. Spend the extra money upfront—it’s worth it.

Step 4: Be Ready for Closing Costs

Many first-time buyers focus only on the down payment and forget about closing costs, which typically range from 2-5% of the home’s purchase price.

🔹 What’s Included in Closing Costs?

• Lender Fees

• Appraisal & Inspection Costs

• Title Insurance

• Property Taxes & Home Insurance

• Recording Fees

🔹 Ways to Lower Closing Costs:

✔️ Ask the seller for closing cost assistance.

✔️ Compare lenders for better fee structures.

✔️ Look for first-time homebuyer programs that help with costs.

You Don’t Have to Do This Alone

Buying your first home doesn’t have to be overwhelming—but the key to success is being prepared. Take the time to understand your finances, get pre-approved, and work with professionals you trust.

At Harmony Home Mortgage, I work with first-time buyers every day, guiding them through the mortgage process with clear, honest advice. Whether you need help getting pre-approved, improving your credit score, or understanding your loan options, I’m here to help.

Thinking about buying your first home? Let’s talk.